Highlights
The rate of contraction is easing in the Mid-Atlantic manufacturing sector which is the best news that can be found in the Philly Fed's July report. General business conditions, which is the headline index, is at minus 12.9 vs June's minus 16.6 which was a reading that startled the markets last month. New orders are at minus 6.9 vs June's minus 18.8 with unfilled orders showing a similar degree of easing contraction.

Shipments show a similar pattern of contraction with delivery times improving which indicates loose conditions in the supply chain consistent with weakness. Manufacturers in the region are also drawing down inventories and also are cutting back their workforces. Price readings show little pressure.

Mid-Atlantic manufacturing is in a soft spot to say the least right now but whether this is spilling out nationally is still not confirmed. Next data on the manufacturing sector will be on Tuesday with the flash PMI on the national level and the Richmond Fed on the regional level.

Market Consensus before announcement
The general business conditions index of the Philadelphia Fed's Business Outlook Survey in June showed contraction for a second month and, at a minus 16.6 level, was much more severe than May's minus 5.8. High mid-teen negative readings swept the details including new orders, unfilled orders, shipments, deliveries, and the workweek. The new orders index fell to minus 18.8 in June from minus 1.2 in May.

2012 Release Schedule

Released On: 1/19 2/16 3/15 4/19 5/17 6/21 7/19 8/16 9/20 10/18 11/15 12/20 Release For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec